The chase for yield has created a lot of distortions, and investors are reaching out to more and more unusual choices to satiate their yield cravings. As a general rule, this creates more risk, and one has to be aware that the crowd that canters in can also be a part of the stampede that gallops out. Hence, caution should be the name of the game. But then, what should an investor use to get returns without dialing up the risk?
At the shorter end, Treasuries are yielding zero percent. At the longer end, they are yielding virtually zero percent.
Even the 10-year note with its 0.7% yield, when transferred into an ETF with expenses and management fees, gives one as much satisfaction as a stifled yawn. Enter the protagonist of our story.
PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT)
While the ticker might have been